Benchmark Issues Positive Forecast for DraftKings (NASDAQ:DKNG) Stock Price

Key Points

• Analysts at Benchmark have raised their price target for DraftKings (NASDAQ:DKNG) from $50.00 to $53.00, suggesting a potential upside of 16.84% from its previous close.
• DraftKings reported a 36.9% year-over-year revenue increase, reaching $1.51 billion in the last quarter, although it missed earnings expectations with an EPS of $0.30.
• Insider trading activity has been notable, with directors and executives selling over 536,627 shares worth approximately $20.8 million in the past three months.

DraftKings (NASDAQ:DKNG - Get Free Report) had its target price boosted by investment analysts at Benchmark from $50.00 to $53.00 in a research report issued on Thursday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Benchmark's target price would suggest a potential upside of 23.60% from the company's current price.

Other equities analysts also recently issued research reports about the stock. Northland Securities set a $50.00 target price on shares of DraftKings in a research note on Friday, April 25th. JMP Securities lowered their target price on shares of DraftKings from $54.00 to $50.00 and set a "market outperform" rating for the company in a research note on Thursday, June 5th. Stifel Nicolaus lowered their target price on shares of DraftKings from $53.00 to $51.00 and set a "buy" rating for the company in a research note on Wednesday, July 16th. Sanford C. Bernstein initiated coverage on shares of DraftKings in a research note on Wednesday, June 4th. They set an "outperform" rating and a $46.00 target price for the company. Finally, Truist Financial boosted their target price on shares of DraftKings from $50.00 to $55.00 and gave the stock a "buy" rating in a research note on Wednesday, July 16th. One research analyst has rated the stock with a hold rating and twenty-six have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $54.78.

DraftKings Stock Down 5.1%

Shares of NASDAQ:DKNG traded down $2.32 during trading on Thursday, hitting $42.88. The company's stock had a trading volume of 16,812,787 shares, compared to its average volume of 9,222,459. The business has a 50 day moving average price of $41.49 and a two-hundred day moving average price of $39.43. The company has a market capitalization of $38.13 billion, a PE ratio of -65.97, a P/E/G ratio of 1.52 and a beta of 1.70. The company has a debt-to-equity ratio of 2.11, a quick ratio of 1.20 and a current ratio of 1.20. DraftKings has a fifty-two week low of $29.29 and a fifty-two week high of $53.61.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported $0.30 EPS for the quarter, topping the consensus estimate of $0.16 by $0.14. The business had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.39 billion. DraftKings had a negative net margin of 5.63% and a negative return on equity of 30.23%. The company's quarterly revenue was up 36.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.12 earnings per share. As a group, research analysts expect that DraftKings will post 0.64 EPS for the current fiscal year.

Insider Buying and Selling at DraftKings

In other news, CFO Alan Wayne Ellingson sold 6,829 shares of the company's stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $36.77, for a total value of $251,102.33. Following the completion of the sale, the chief financial officer directly owned 171,268 shares of the company's stock, valued at approximately $6,297,524.36. This represents a 3.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Matthew Kalish sold 210,000 shares of the stock in a transaction dated Tuesday, May 13th. The stock was sold at an average price of $37.83, for a total transaction of $7,944,300.00. Following the transaction, the insider directly owned 4,155,130 shares of the company's stock, valued at $157,188,567.90. This represents a 4.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 642,181 shares of company stock valued at $25,550,925 over the last ninety days. 51.19% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Beacon Pointe Advisors LLC raised its holdings in DraftKings by 1.9% during the fourth quarter. Beacon Pointe Advisors LLC now owns 10,699 shares of the company's stock worth $398,000 after purchasing an additional 203 shares in the last quarter. Nissay Asset Management Corp Japan ADV raised its holdings in DraftKings by 0.3% during the fourth quarter. Nissay Asset Management Corp Japan ADV now owns 77,696 shares of the company's stock worth $2,946,000 after purchasing an additional 217 shares in the last quarter. Brooklyn Investment Group raised its holdings in DraftKings by 7.3% during the first quarter. Brooklyn Investment Group now owns 3,987 shares of the company's stock worth $132,000 after purchasing an additional 270 shares in the last quarter. TD Private Client Wealth LLC raised its holdings in DraftKings by 54.4% during the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company's stock worth $34,000 after purchasing an additional 282 shares in the last quarter. Finally, Farther Finance Advisors LLC raised its holdings in DraftKings by 9.1% during the second quarter. Farther Finance Advisors LLC now owns 3,413 shares of the company's stock worth $146,000 after purchasing an additional 286 shares in the last quarter. 37.70% of the stock is owned by hedge funds and other institutional investors.

About DraftKings

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators.